In a bold move, Milbank recently raised the associate salary scale by $10K, a decision that has been highly praised by associates especially in the midst of stealth layoffs that have dominated this year’s headlines.
However, rather than other law firms matching this raise, there has been criticism, even derision, from some corners of the legal sector. A notable quote from an unnamed Am Law 50 firm leader criticized the raise, calling it “tone deaf”, likening it to boasting about personal wealth during economic hardship.
Interestingly, this critique seems misplaced and even hypocritical. After all, the PPEP numbers that law firms report to Am Law can also be seen as blatant displays of wealth. Paying an extra few hundred dollars per pay period seems more a reward for talented employees rather than a show-off of firm’s wealth.
A more disturbing comment from another anonymous Am Law 50 executive suggested that increasing salaries simply puts a target on associates’ backs, inducing more billable hours from them, a claim that appears to be subtly gaslighting employees.
When looked at closely, Milbank’s $10K raise is barely a raise in the true sense of the word. It’s merely an adjustment for inflation, similar to their 2018 increase. The legal industry has been through an inflation cycle the likes of which hasn’t been seen since the 80s. A $10K addition to salary is just about right keeping in line with it.
There is an intense amount of disingenuity among critics as they argue that this pay raise will necessitate attorneys to bill more. The reality is, lawyers aren’t making more money. They’re just getting back what they had before inflation hit. Actually, in real terms, lawyer’s salaries haven’t changed for the past 20 years. The $10K raise does not necessitate a single second of additional billable hours compared to those in 1999. The greatest trick ever played on employees is to make them believe they’re getting a real raise when, in truth, their compensation is decreasing compared to living expenses.
Therefore, the credit for this move must go to Milbank. However, instead of dubbing it a raise, we should call it what it truly is – a necessary adjustment for inflation. Any firms that fail to match Milbank’s increases are, in effect, reducing associate salaries.